Andrade Fighting to Stop New Streaming Fees

SPRINGFIELD, Ill. – State Rep. Jaime Andrade Jr., D-Chicago, is working to prevent burdensome new fees on streaming services with legislation designed to close a loophole that could allow communities to add fees on every subscription video service.

“Working families face rising costs for everything from their electricity to grocery bills – we shouldn’t add streaming services to that list,” Andrade said. “Lawsuits from local governments are attempting to require these streaming services to charge 5 percent franchise fees per streaming service to every Illinois family. That is 5 percent for Hulu, 5 percent for Netflix, 5 percent for HBO Max, 5 percent for Amazon and on down the line. That is unacceptable, and we are putting a stop to it.” 

Andrade’s House Bill 3808 makes no substantive changes to existing utilities law, only clarifying that streaming services will not be required to pay ‘franchise fees’ to local governments for utility lines owned, operated and paid for by cable companies. This legislation prevents Illinois families from being charged in the future for 5 percent franchise fees for streaming services that the Legislature never intended or approved. 

Andrade worked diligently to pass last year’s budget to save families money on their grocery and gas bills. He has been a longtime advocate for flexible legislation that keeps up with advancing technology issues. Andrade helped pass House Bill 3955 which allowed automatic subscriptions to be canceled more easily online, ensuring consumers are not charged unnecessarily because of cancellation obstacles. 

“Without this legislation, costs for a family’s set of streaming services will go up and put them in a financial bind,” Andrade said. “Families are struggling with rising costs as it is. The legislation I am putting forward will make sure not another dime is taken out of families’ pockets.”